Former Olympic swimmer Scott Miller arrives at the District Court, Downing Centre in Sydney, August 2009. Source: The Daily Telegraph

DISGRACED Olympian Scott Miller has been embroiled in a fresh drug scandal after he was nabbed by police allegedly in possession of several grams of ``ice'' and $17,000 in cash.

The dual swimming medallist was arrested at a home in Mascot, in Sydney's south, and charged with two counts of possessing goods suspected of being stolen and one count of possessing a prohibited drug.

The 38-year-old, from Edgecliff in Sydney's east, has been granted conditional bail to appear at Waverley Local Court on July 10.

The Mascot home where he was arrested had been under surveillance by detectives for some time, Channel 7 reported.

The charges come four years after Miller narrowly avoided jail for a 2009 conviction over the supply of ecstasy tablets and receiving stolen goods.

He pleaded guilty to five charges, including giving mate Mark Catchpole _ son of rugby union legend Ken Catchpole _ 12 ecstasy tablets as a birthday present and possessing a stolen pill press.

He claimed he never received any financial benefit from drugs, only using them with friends, and had the $18,000 pill press because it was ``collateral'' for a debt owed to him. District Court Judge Greg Woods ordered Miller to complete 100 hours community work and placed him on a two-year good behaviour bond.

Miller admitted turning to binge drinking and drugs, including cocaine, marijuana and ecstasy, to self-medicate depression following a series of injuries after the 1996 Atlanta Games ``strangled'' his career.

At the time, he said he wanted to rebuild his life by getting a job and said he might even return to the pool ``to do a bit of swimming''.

"Ever since 2004, when my career was over, I just didn't know what to do with my life, it was to numb the pain of being finished,'' Miller told a court.

"I started smoking (marijuana) and partying and it became part of my life.''

The year before, he was arrested with Catchpole after police raided a storage unit in Brookvale and found a stolen pill press and pill counter. While Catchpole was sentenced to five months' periodic detention for weapons charges relating to that investigation, charges against Miller were dropped because there was not enough evidence to prove he had used the items.

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